There are 4 factors caused goods lose in a store, that is:

• 42% are stolen by external personnel. This happens when the store employees are not observant enough to notice theft happening. Human resources is not enough to prevent theft. Security systems can provide hard evidence of theft occurring in your store and to prevent it as well. From description above, showed that theft case in a store has happened because there is no good security system in a store.

• 32.5% are stolen by employees. This is because the employees have prior knowledge of the security system in their workplace  and where there are no good controls in the storage area hence becoming vulnerable to internal theft.

• 16.5% is caused by negligent administration, such as registration or wrong input of transactions.  This can be difficult to identify in many cases where the store manager is not diligent enough but can be avoided with a proper security system set up.

• 6.5% is from suppliers. Whilst this seem like a small percentage, the effect to the bottom line can cause bankruptcy if not noted soon enough. Mistakes like price differences, good quantities, and swapping of merchandise with those of lower quality can slip through the store unnoticed. However if this can be monitored with a security system in place, this can be prevented.

Actually, the store goods loss is categorized intp two parts, which is:

• Unknown Loss (loss of merchandise with no known cause) -  Loss of merchandise due to theft carried out by either employees or customers.

• Known Loss (loss of merchandise with known causes) – Loss of merchandise due to factors such as damage, over- stocking, expiration of fresh foods, incorrect placement of order etc.

In order to avoid the loss of merchandise in a store is indeed challenging. However this level of loss can be controlled and reduced with a proper security system together with good employee training, and discipline,

The key to loss prevention is an effective security system tailored to your stores’ requirements which in the long run will help to reduce and control loss thus increasing your store’s profitability.